Only 15% of Professional Athletes Are On This List…
If given the option between standing out or being part of a statistic, few athletes are going to elect to be part of the minority. In sports, being one of a small percentage typically means being at the top of the list, breaking a record, or accomplishing a feat that has never been done before. Yet, despite this mentality during game time, 85% of professional athletes find themselves in a statistic that poses the threat to jeopardize their future – specifically their financial future.
With coaches and trainers in place for every aspect of perfecting their sport, it is surprising to learn that only 15% of professional athletes have a financial advisor in place. In the NHL, most players are active for less than 15 years, meaning that by the age of 30 many are already retired. So, the question becomes how to stretch 15 years of income for the average 50+ years of retirement that comes after?
Without a financial plan, it is no mystery that the majority of ex-professional athletes find themselves in some sort of financial stress in the years post-sport. Financial stresses that are easily avoidable with a financial game plan in place. A financial game plan that will help you to adapt your lifestyle now in order to be focused on longevity – not just temporary luxury.
In many cases, the need to downsize day-to-day expenses is the first step towards putting a long-term financial plan in place. In the NHL, the average salary is $2.4M, yet many players spend more than half that amount solely in maintaining an excessive lifestyle. Want to maintain this lifestyle post retirement? Difficult to do. It would require approximately $25M in savings and investments. Few are in the position to put that level of money aside during a short sports career, and less likely without the help of a financial advisor.
It is important to work with a team of financial professionals who are specifically educated in the unique investment needs of professional athletes. We have further customized our PIMS five step process in order to ensure we are able to construct a financial plan that will grow with an athlete’s distinct income structure.
Our team will work to educate you in understanding financial vocabulary and learning different ways to grow your money. Simple measures like placing income in charitable trusts or family foundations make it possible to generate future income while supporting a favorite cause, while also producing a large tax deduction. Thus, saving you money.
In working with PIMS, or any financial advisor, make sure that your money manager has identified the best money management strategies in respect to your personal objectives and vision for the future. We accomplish this for our clients by not only drawing from our internal team, but also from our network of global planners to coordinate your all-star financial team that may include a CPA, estate planning attorneys, and insurance professionals. Each dedicated to executing their part of a customized financial plan that allows your money to work for you, instead of you working for your money.
We work with our clients to start planning now to avoid common financial pitfalls faced by the majority of former professional athletes and are committed to helping you to enjoy the rewards of your professional career many years after the last whistle has blown.